A psychological price is designed to encourage purchases on the basis of rational
response rather than on the basis of emotional reactions.
a. True
b. False
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including
blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores
such as Kohl’s, Macy’s, and J.C. Penney through its own sales force. Kerry Wilson is
one of Presto’s salespeople, who is responsible for stores headquartered in Region 1 of
the U.S. Kerry, has just come from a monthly meeting where she has been informed
about the new stovetop grill that will be part of next season’s lineup. Presto’s marketing
department has developed a promotional plan for the new grill and outlined that plan
for the sales staff in the meeting. The promotional plan for the next 60 days will include
television commercials which demonstrate the new grill, in-store rebates, and a
customer contest for the best grilled sandwich recipe. In addition, Kerry and other
members of the sales force will be given a free grill for their own home use so they can
become more familiar with the product. Presto is also offering a free trip to New York
City for their staff salesperson who has the highest dollar in sales to his or her stores. To
encourage the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases after the 60-day promotion is over.
Which of the following consumer sales promotion methods is Presto using for the new
stovetop grill?
a. Television commercials and the customer contest
b. Television commercials and the in-store rebate
c. The customer contest and the in-store rebate
d. The sales force contest the in-store rebate
e. The sales force contest and the customer contest
By buying in large quantities and delivering to customers in smaller lots, a wholesaler
may perform all of the following physical distribution activities except:
a. inventory planning.
b. transportation.
c. materials handling.
d. unit pricing.
e. communication.
Which of the following products is least likely to be segmented according to stages in
the family life cycle?
a. Single-family homes
b. Cars and SUVs
c. European vacations
d. Soft drinks
e. General Electric appliances
Scenario 15.1
Use the following to answer the questions.
When introducing a new vehicle targeted to the under-30 population, Toyota used
several different methods of communication. First, it did research in several large cities
to find out who the opinion leaders were in that age group. By visiting the local
nightlife, one or two people in each city were selected and given a new vehicle to drive
for two weeks. They were told to share information about this new vehicle with their
friends. After a few weeks, a television campaign was launched with commercials
introducing the new vehicle. Toyota also placed ads in magazines that were targeted to
the under-30 age group, and used drive-by billboards in the large cities near the
nightclub areas.
Refer to Scenario 15.1. Toyota’s act of giving the opinion leaders a new vehicle for two
weeks is best described as an example of:
a. product placement.
b. personal selling.
c. loyalty marketing.
d. buzz marketing.
e. embedded marketing.
Information from the U.S. Census Bureau is commonly used as by a variety of agencies
and organizations.
a. external secondary data
b. sampling systems
c. primary data
d. internal secondary data
e. hypotheses
Achieving greater market penetration is a typical business goal during the stage of the
product life cycle.
a. maturity
b. growth
c. introduction
d. market testing
e. decline
Which of the following statements about business buying is false?
a. Business marketers prefer not to sell to customers who place small orders.
b. Business marketers must often sell their products in large quantities to make profits.
c. Most business purchasing decisions are made by committee.
d. Business purchases are usually made on the basis of contracts.
e. Reciprocity influences purchasing agents to deal with all suppliers of a product.
If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is
using_______pricing methods?
a. demand-based
b. cost-based
c. reference
d. competition-based
e. psychological
_______offers the potential benefits of cost efficiency, repetition, and adding product
value, while slow feedback is one of its disadvantages.
a. Public relations
b. Advertising
c. Personal selling
d. Sales promotion
e. Personal selling
Suggestive brand names are easier to protect legally than fanciful names.
a. True
b. False
Motives can be used to segment markets.
a. True
b. False
Changes in social and cultural values have dramatically influenced people’s needs and
desires for products.
a. True
b. False